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Heretic Returns: DownWithInfidels is Positive Points; Peter Schiff 16 Sep 08

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September 17, 2008 – Comments (3)

The Heretic,  DownWithInfidels returns after a Death at the Gold Stake. 

DownWithInfidels hater of the American "borrow your way into prosperity" and one of the biggest Gold BULLS in CAPS, has returned back to positive territory. Thanks to the gold rally and a +800 points day.

Nothing is more fun then watching a one sided trading, loud mouth getting a Fool's Bennie Hat of humiliation. BRIC buyers, and Commodity Bulls have been handed their share of Bennie Hats and (< 20)s lately.If you like Gold and hate American Consumption based stocks, DownWithInfidels portfolio has been discounted 4K points in the last couple months.  His Gold stocks look pretty cheap right about now...

Commodities are in a bubble, just like about every other financial asset. But I would rather own a commodity producer then ANY financial or consumption based economy stock. 

I WOULD RATHER BUY AND PHYSICALLY HOLD GOLD (not silver), then hold some mysterious gold stock.

REMEMBER: The government can nationalize ANY asset (including insurance?). They can take over a mine, a factory or your safety deposit box or GLDs holdings. Right? They have done this before. Right?

"The FEDS balance sheet is infinite..."

Former FED Reserve Governor Wayne Angel, on Fast Money 17 Sep 08

Peter Schiff and Glenn Beck 9-16-08 

 

 

3 Comments – Post Your Own

#1) On September 17, 2008 at 6:56 PM, AnomaLee (28.60) wrote:

"BRIC buyers, and Commodity Bulls have been handed their share of Bennie Hats and (< 20)s lately"

Yea, lately...

My high volume of making picks stopped back in July so I avoided a much similar fate, but focusing on "what have you done lately" can be damaging and very short-sighted.

Pointing out this correction is like pointing out the fact the Tom Brady and the Patriots didn't win the Superbowl last year and firing the coach...

Money is not a resource. However, commodities, real estate, and the underlying assets of stocks and bonds are actual resources, and commodities are still candidly outperfoming virutally everything else in any timeframe you look at longer than 3 months... 

Now, I'm no gold bug, but to their defense I still highly respect players like DWI, ATWD, TMFSinch, and many many others whose scores have dropped and I agree that gold will eventually be worth over $1,200 and silver over $30

Like DemonDoug I still think crude oil will inevitably rise. Demand may be declining but the supply costs of these resouces is rising.

I do think that today's huge jump in gold(all precious metals) was a little over-extended considering the fact that base metals themselvers were negative. I don't know why more people aren't  more bullish on silver because it has more industrial properties than gold (as of now) but that could change because of nanotechnology which could be a huge X-Factor for gold prices in the next 10 years....

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#2) On September 17, 2008 at 7:18 PM, abitare (38.04) wrote:

AnomaLee 

Good reply. I do like Commodity producing companies better then leverage paper shufflers (Goldmand Sach), but long commodities, short the US dollar is a crowded trade and the paper shuffelers have to sell assets in order to cover there overleveraged gambling losses. They will have to sell commodities. 

People can buy commodities and avoid the stuff traded on the exchanges. Example: bush meat in Africa, never makes it to Chicago.

Central bankers by raising interest rates or changing the rules and/or a recession can kill the commodity bull. 

I still like Gold, it is a currency, but it has had a huge run up and there is plenty of leverage left to leave the system. 

Gold is money. Silver is more of a commodity. I think Gold is a better bet. 

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#3) On September 17, 2008 at 7:30 PM, abitare (38.04) wrote:

I should make my point more clear:

LONG GOLD

SHORT FINANCIALS

Is a trade to consider and copying DownWithInfidels Portfolio at this point seems to be a good idea to me.

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